How do you answer this question when a seller is interviewing you and several potential listing agents:

"Why should I hire you?"

Some agents respond with their experience in the business, their knowledge of the community, their sales record for nearby homes. Others stress their marketing plan, recent seller testimonials or the regional dominance of their broker.

Telling prospective sellers that you want to satisfy their needs -- that you want to help them sell their property for as much money as possible is not only boring, but it is the same promise every other agent makes.

Unlike the answers the other agents gave to the seller’s query, why not say something like this instead?:

"You should hire me because you need an agent who knows what’s most important about selling your house.

"Most sellers think price is most important. My guess is that the other agents are pressing you to set a reasonable price when you bring the house to the market.

"The initial asking price is important. I’ll help you sell the home for as much money as possible, but what most sellers don’t know is that the buyers’ financials are more important than the price.

"You see, I could help you sell your house for even more than the asking price, but if the buyers don’t get their mortgage then the transaction falls apart – usually just before settlement.

"Many sellers don’t understand that when they sign a sales contract with buyers, with few exceptions their house has to come off the market. Multiple listings services (MLS) require it and even more important, most buyers and their agents demand it.

"So, Ms. Seller, the house comes off the market. When the house comes off the market, as a seller you are taking a tremendous risk.

In most markets, sellers have one chance to sell their property for as much money as possible -- when they first bring the house to market. Once the first contract with the first buyer has been terminated, the house comes back to market a tainted property. Everyone wonders what’s wrong with the house. No one considers that the buyers' finances might have been too weak for the lender. Odds are the house won’t sell for nearly as good a price and terms the second time around as it did the first time.

You should hire me, Ms. Seller, because I can help you make the best decisions about what’s really most important: the buyer’s financial strength. Will the signed sales contract result in a successful settlement or does the buyer’s financial weakness pose unacceptable risks?

If you hire me, I will help you assess the risk inherent in an offer before you sign it – at a time when all your options are still available and you still have the chance to sell your house for the best price and terms possible – before you sign that first sales contract and take your house off the market.

Increase your conversion ratio. Use your real estate financial expertise to distinguish yourself from the competition and serve your clients better. Protect the sellers and make sure they never sign a contract with buyers and take their homes off the market until they know, with your help, that the buyers can perform financially. Using your knowledge of real estate finance can result in more listings for you.

Published: June 6, 2002

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